Insights – Key takeaways from panel discussion on “Distressed Debt and Special Situations: Investing in Asia” from the Singapore Insolvency Conference 2025
An engaging and insightful panel discussion on “Distressed Debt and Special Situations: Investing in Asia” from the Singapore Insolvency Conference 2025 held at the Parkroyal Collection Marina Bay in Singapore on 7 October 2025.
The panel was chaired by David Chew from DHC Capital. Panel members included, Jack Ng (Investment Director, Navis Capital), Luke Santostefano (Director, Gordon Brothers), Melvin Tan (Managing Director, Fulcrum Capital) and Quentin Pak (Managing Director, Burford Capital).
Key takeaways:
Evolution of private credit investment strategy in South East Asia
Early days, deal opportunities shaped around distressed and special situation opportunities - deep value, big upside and downside protection
Present, landscape shifting due to lack of catalysts for distressed opportunities. Moving towards a solutions funding model. This could range from funding performing credit for growth as banks have retreated, sponsor financing and hard asset businesses facing sector dislocations and structuring as hybrid capital (e.g. preference equity)
Credit structuring
Fundamental credit basics. Lend close to the assets. Jurisdictions matter. Offshore assets, structural subordination, are key factors in emerging markets
Banks approach to considering haircuts on loans in a restructuring
Limitations on ability to take haircuts due to regulatory requirements (e.g. risk weighted assets / holding capital and releasing capital)
Looking ahead for 2026
Opportunity in defaults in private credit market
Loans aggressively underwritten during the bull market days
Funds not all built like banks with in house teams to manage workouts, credit and legal
Key questions: (i) Does the fund have availability of resources and skill sets to manage a default situation, (ii) how prepared to engage with the borrower and other key creditors in the debt stack and (iii) how prepared to enforce over the collateral or take the keys to the company
About the Singapore Insolvency Conference
The Singapore Insolvency Conference is the flagship restructuring and insolvency conference in Singapore and is organised by the Insolvency Practitioners Association of Singapore.
The Insolvency Practitioners Association of Singapore is jointly founded by the Institute of Singapore Chartered Accountants and the Law Society of Singapore.
